Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Company Report

Strategy Advisors, Inc.

Yutaro Nishi

May 24, 2024

Boost Industry-Leading Profitability
Further by Doubling Assets

Stock Price and Volumes

Canadian Solar Infrastructure Fund, Inc. ("CSIF") is sponsored by the Canadian
Solar Inc (NASDAQ CSIQ) Group, the world's fifth largest panel manufacturer.
CSIF’s annual photovoltaic output capacity growth rate is about 20%, over
twice the growth rate of the overall domestic market. CSIF’s current total
capacity is 226.4 MW (about 0.3% of the total in Japan).
For FY12/2023, sales were \4,538mn (+22.2% YoY), operating profit margin
was 40.7%, net income margin was 30.5% and their payout ratio was 122.2%.
ROE was around 3.0%, PBR was 1.1-1.2, dividend yield was in the 6% range
and BPS remained basically flat at around \103,000.
Peers are Enex Infrastructure Investment Corporation (TSE 9286) (total output
capacity: 243.4 MW), Japan Infrastructure Fund Investment Corporation (9287)(152.8 MW), Tokyo Infrastructure Energy Investment Corporation (9285) (69.8
MW) and Ichigo Green Infrastructure Investment Corporation (9282) (25.8 MW).
The dividend yield of each company is about 6~7%. But unlike CSIF, its peers’
dividend levels have been maintained by reducing BPS. When calculating theyield including BPS change, it is approximately 5%, 4%, 6% and 3% respectively.

Source: Strategy Advisors

Key Indicators
Stock Price (2024/5/23)

110,900

Year-to-Date High (2024/1/10)

115,500

Year-to-Date Low (2024/3/5)

107,100

52-Week High (2023/6/28)

125,100

52-Week Low (2024/3/5)

107,100

Number of Shares Issued (‘000)

451.8

The reason why CSIF's yield including BPS change is 6%, the highest among its
peers; is that it can fully utilize the knowledge of the Canadian Solar Group,
which has all functions of panel manufacturing, solar power plant development
and operations. Since the sponsors of peers belong to industries like trading or
financing, it is difficult for peers to achieve the higher dividend yields of CSIF.

Market Capitalization (\ bn)

50.4

EV (\ bn)

92.2

Capital Adequacy Ratio

49.1

PER
(FY3/2024
CoE, Times)(Actual,%)-The PBR of peers is mostly around 1.0. But if the market's perception of the yield
including BPS, rather than the dividend yield increases; the stock price of CSIF
is likely to rise relatively. CSIF also aims to double its asset size to \200 bn in themedium term, a plan supported by its current pipeline of 21 properties (392.8
MW). Asset size expansion can lead to improved profitability through more
efficient O&M, higher creditworthiness, portfolio stabilization and greater
tolerance for acquiring additional large-scale power plants.

PBR (FY3/2023 Actual, Times)

1.1

Yield (FY3/2024 Coe, %)6.7

Source: Strategy Advisors

Japanese GAAPFY End

Sales

YoY

OP

YoY

RP

YoY

NP

YoY

EPS

DPS

(\ mn)(%)(\ mn)(%)(\ mn)(%)(\ mn)

(%)

(\)

(\)

6/2023

3,453

-15.0

1,156

-33.7

1,004

-33.5

1,003

-33.5

2,594

3,750

12/2023

4,538

22.2

1,847

33.6

1,387

14.3

1,386

14.3

3,111

3,750

6/2024 CoE

4,500

30.3

1,671

44.6

1,404

39.8

1,403

39.9

3,107

3,775

12/2024 CoE

4,459

-1.7

1,629

-11.8

1,365

-1.6

1,364

-1.6

3,020

3,775

6/2024 CoE

4,445

-1.2

1,641

-1.8

1,387

-1.2

1,386

-1.2

3,070

3,775

Source: Strategy Advisors, based on Company Data

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Canadian Solar Infrastructure Fund, Inc. | 9284
Table of Contents
1.

(TSE)

Investment Corporation Overview .................................................................................................... 5
1)

Infrastructure Fund with the Second Largest Panel Output Capacity Growing at Twice the Speed of the Market ......... 52)

Rapid Portfolio Diversification ........................................................................................................... 82.

Peer Comparison ...........................................................................................................................12
1)

Only CSIF Can Realize a "Vertically Integrated Model” ........................................................................122)

CSIF's Pipeline is the Largest Amongst the Infrastructure Funds ..........................................................13

3)

CSIF Stands Out in Terms of Profitability ..........................................................................................15

4)

CSIF Tops the List in Terms of Actual Performance, Considering Dividend Yield & the Rate of Change in BPS ...........17

5)

CSIF is Preferred by Foreign Investors .............................................................................................20

3.

Competitive Advantage Created by the Difficulty of Imitation ..............................................................22

4.

Domestic Photovoltaic Market and CSIF's Growth Strategy .................................................................24
1)

Domestic Market is Expected to Grow at 5-7% Per Annum Through 2030 ............................................24

2)

CSIF’s Growth is Expected to Continue to Outpace Domestic Market Growth .........................................25

3)

If the Debt Repayment Period can be Aligned with the Depreciation Period, the Speed of Business Growth can be Accelerated ......25

5.

Current Performance Trends ...........................................................................................................27
1)

Results for FY12/2023 ...................................................................................................................272)

FY6/2024 Forecasts and Beyond .....................................................................................................29

6.

ESG .............................................................................................................................................30

7.

Valuation ......................................................................................................................................32

8.

1)

Short-Term Oversold Sentiment for Infrastructure Funds in a Rising Interest Rate Environment ..............32

2)

Comparing Long-Term Trends, CSIF is Relatively Oversold ..................................................................33

3)

Increased Market Capitalization May Result in a Liquidity Premium ......................................................34

4)

Business Value That is Not Factored into Market Capitalization ............................................................35

5)

Renewable Energy-Related Investments Are Preferred Globally ...........................................................36

6)

Infrastructure-Related Funds have a Global Investment Capacity of ¥50 Trillion ....................................37
Risk Factors ..................................................................................................................................382

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Executive Summary
Infrastructure Fund with theSecond Largest Panel
Output Capacity Growing at
Twice the Speed of theMarketYield Including BPS Change
is 6% Per Annum, theHighest Level Among Peers

CSIF is an infrastructure fund listed in 2017 and sponsored by Canadian Solar
Group, the world's fifth largest solar panel manufacturer. Its output capacity
growth rate has been about 20% per year, more than double the growth rateof the country as a whole (about 7-10%), and its total output capacity at theend of FY12/2023 was 226.4 MW (about 0.3% of the country's total), making
it the second largest among listed infrastructure funds.
For the fiscal year ended December 2023 (six-month settlement), net sales
were \4,538mn, an operating profit margin of 40.7%, a net income margin of
30.5% and a dividend payout ratio of 122.2%. ROE is around 3.0%, PBR is1.1~1.2, dividend yield (distribution yield = profit distribution yield + profit
distribution interest rate) is in the 6% range and net assets per share (BPS) are
generally flat at around \103,000. Other companies in the same industry are
Enex Infrastructure Investment Corporation (total output capacity 243.4 MW),Japan Infrastructure Fund Investment Corporation (152.8 MW), Tokyo
Infrastructure Energy Investment Corporation (69.8 MW) and Ichigo GreenInfrastructure Investment Corporation (25.8 MW). In both cases, the dividend
yield is about 6~7% in 2023; but unlike CSIF, these are investment corporations
that reduce BPS and maintain the dividend level and when calculating the yield
including BPS changes, it will be about 5%, 4%, 6% and 3%, respectively.
* Yield including BPS change = dividend yield + (BPS change rate ÷ PBR). As the denominator of
the BPS change rate is net assets per share (BPS), we divided it by PBR to add it to dividend yield.

Only CSIF Can Take Full
Advantage of their Panel
Manufacturer's Knowledge

Asset Doubling Plan Backed
by a Concrete Development
Pipeline

CSIF's BPS change unrealized yield of approximately 6% is the highest amongits peers because it can fully utilize the knowledge of the Canadian Solar Group,
which has all the functions of panel manufacturing, solar power plantdevelopment and operations. Since the sponsors of other companies in theindustry include trading companies and financial-related companies, it isdifficult for them to achieve high dividend yields by mimicking the company's
business structure.
The company aims to double its asset size to \200bn in the medium term, witha view to acquiring mainly 19 properties (345.8 MW) that are currently underdevelopment or are under development by sponsors, as well as two properties(47.0 MW) that have already been developed by third parties. In addition, there
has been an increase in the number of cases of the sale of power plants byindividuals who are put-off by the maintenance burden due to increased output
curtailment and deterioration over time and also by foreign companies who
have decided to withdraw from development due to a decline in FIT prices or
termination and the expansion of asset scale through the acquisition of such
power plants is one of the options.

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Canadian Solar Infrastructure Fund, Inc. | 9284
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Earnings and Stock Price
Outlook

CSIF expects to maintain the same level of sales, profit and dividends as in
FY12/2023 for the next three fiscal years through FY6/2025; but these figures
do not include additional asset acquisitions and sales and profit levels will swing
upward if asset acquisitions are made. For most infrastructure funds, including
CSIF, share prices have been stable at P/B ratios in the 1.0-1.2 range anddividend yields in the 6% range. However, as mentioned above, if the market
becomes more aware of yields based on the company's performance, including
BPS, rather than the dividend yield on the surface, CSIF's share price is likely
to rise relatively higher. In addition, CSIF aims to double its asset size to \200bn
in the medium term and this plan is concretely supported by its current pipelineof 21 properties (392.8 MW). Asset size expansion can lead to improved
profitability through more efficient O&M, higher creditworthiness, portfolio
stabilization and greater tolerance for acquiring additional large-scale power
plants.

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Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

1. Investment Corporation Overview
1) Infrastructure Fund with the Second Largest Panel Output
Capacity Growing at Twice the Speed of the Market
Achieve the Only VerticallyIntegrated Model

CSIF is an infrastructure fund that listed on the TSE on October 30, 2017. An
infrastructure fund is a structure whereby funds collected from multiple
investors are used to purchase infrastructure facilities such as power plants,
which are then leased out and rental fees are received. The "sponsor"
establishes and partially invests in the infrastructure fund, the "operator" leases
and operates the infrastructure facilities, the "O&M provider" handles themaintenance of the power plants on behalf of the operator. The "asset manager"
represents the interests of the infrastructure fund in selecting assets to be
included in the infrastructure fund and negotiating lease contracts with theoperator. In the case of CSIF, Canadian Solar Project Corporation ("CSP") is thesponsor and operator, Canadian Solar O&M Japan Inc. ("CSOMJ") is the O&M
contractor and Canadian Solar Asset Management K.K. ("CSAM") is the asset
manager. Both belong to the Canadian Solar Inc (NASDAQ CSIQ) ("CSIQ")
group, the world's fifth largest solar panel manufacturer. The strength of thecompany is its "vertically integrated model," in which they are panel
manufacturers, who are well versed in the characteristics of solar panels andare involved in everything from the construction of power plants using theirown panels to the operation of the plants.

Figure 1: Organizational Structure

Source: Company Data

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Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Figure 2: Major Shareholders (As of 31st December 2023)
Unitholding

Name

Number of

Ratio toInvestment Units

Total

Held (‘000 units)

Issued Units(％)

1

Canadian Solar Projects K.K.

65.6

14.53

2

THE BANK OF NEW YORK MELLON SA/NV 10

7.9

1.75

3

The Bank of Fukuoka, Ltd.

7.8

1.73

4

SSBTC CLIENT ONMIBUS ACCOUNT

6.2

1.36

5

Custody Bank of Japan, Ltd. (Trust Account)

5.9

1.30

6

JP MORGAN CHASE BANK 385650

5.7

1.25

7

THE BANK OF NEW YORK 133522

4.6

1.02

8

The Master Trust Bank of Japan, Ltd.

4.4

0.96

9

Individual Investor

4.2

0.93

10

JP MORGAN CHASE BANK 380646

4.1

0.90

116.4

25.76

Total
Source: Company Data

CSIQ is the World's Fifth
Largest Solar Panel
Manufacturer with
Production Facilities
Around the WorldCSIQ was founded in Canada in 2001 by Shawn Qu, who received his PhD inmaterials science from the University of Toronto, then started working as a
researcher at Ontario Power Generation (unlisted) and subsequently move to
ATS Automation Tooling Systems Inc. In 2010, the company entered the solar
power plant construction business and in 2015 acquired Recurrent Energy, LLC,
a solar power plant development company owned by Sharp Corporation (TSE6753). The company has solar panel production facilities in Canada, the U.S.,
China, Japan, Thailand and Vietnam and ranks fifth in the world in terms ofpanel production capacity. The top four companies are Jinko Solar Co Ltd(Shanghai 688223), Trina Solar Co Ltd (Shanghai 688599), LONGi Green
Energy Technology Co Ltd (Shanghai 601012) and JA Solar Technology Co Ltd(Shenzhen 002459). All of the top five companies, including CSIQ, mostly
manufacture mainstream crystalline silicon solar panels, with conversion
efficiencies of around 20%.

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Canadian Solar Infrastructure Fund, Inc. | 9284
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Figure 3: CSIQ's Solar Panel Production Results

Source: Company Data

CSIQ Group is Number-One
FIT Bidder by Far and Has a
Rich Pipeline

In Japan, Canadian Solar Japan K.K. was established in 2009 and started
constructing solar power plants in 2012, through CSP; which was establishedin 2015 as a separate company dedicated to solar power plant development. It
has participated in 9 out of the total 15 FIT system bids going back 2017. Witha total capacity of 180 MW, the company is in first place, far ahead of thesecond-placed bidder (with a total capacity of approximately 98 MW). All but
one of CSIF's current solar power plants (with a total output capacity of 226.4
MW) were acquired from the CSIQ Group, while the rest of the CSIQ Group's
solar power plant pipeline (projects already in operation, under construction,and under development) have remained above 300 MW for the past five years,
CSIF continues to maintain a structure that guarantees its growth potential.

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Canadian Solar Infrastructure Fund, Inc. | 9284
Figure 4: CSIQ Group's Extensive Pipeline(TSE)

Source: Company Data

Expand Growth
Opportunities ThroughDiversification of Property
Acquisition Routes

CSIF's total output capacity at the time of its listing was 72.7 MW, but throughmultiple subsequent asset acquisitions, it has now reached 226.4 MW and has
grown at an annual rate of 20%. This means that it has grown at twice or more
the pace of the overall domestic market, which grows at about 7-10% per year.
This high growth rate has been supported by CSIQ Group's extensive pipeline.
In addition to acquiring properties from the CSIQ Group's pipeline, CSIF isdiversifying its acquisition routes by establishing a system for acquiringproperties from third parties using CSAM's unique network in Japan, in order tofurther increase its growth potential in the future. Furthermore, in addition to
the conventional method of acquiring properties directly from sellers, CSAM
plans to acquire properties through bridge funds, which will enable it to adjustfor inconsistencies in the timing of transactions between sellers and CSIF andto control the number and scale of properties acquired, thereby increasing
opportunities to acquire properties. The plan is to increase opportunities toacquire properties.

2) Rapid Portfolio Diversification
Even if the Size of thePower Plant is Large or the
FIT Feed-In Tariff is High,
Profitability Will Decrease If
the Power Plant is
Overpriced

CSIF has 31 solar power plants in Japan with a total output capacity of 226.4
MW and an average output capacity of 7.3 MW and the FIT price for most plants
is \30-40. The top three power plants with the largest output capacity are CS
Hiji-machi No. 2 (Oita) (53.4 MW), CS Mashiki-cho (Kumamoto) (47.7 MW),and CS Daisen-cho (Tottori) (27.3 MW).

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Canadian Solar Infrastructure Fund, Inc. | 9284
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Conversely, the top three power plants with the smallest output capacity are CS
Koriyama (Fukushima) (0.6 MW), CS Isa (Kagoshima) (0.9 MW), and CS Osaki
Kameinuma (Miyagi) (0.9 MW). For CSIF, the acquisition price from the seller,
not the size, is the determining factor for the profitability of each power plant,
because even if the size is large or the FIT price is high, profitability will be low
if the acquisition price from the seller, such as CSP, is relatively high. In addition,of course, the amount of sunlight and output curtailment conditions in eachregion also affect profitability.
Figure 5: CS Hiji-machi Dai-Ni Power Plant (Oita Prefecture) (53.4 MW)

Source: Company Data

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Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)
Figure 6: CS Koriyama-shi Power Plant (Fukushima Prefecture) (0.6 MW)

Source: Company Data

The Most Profitable Power
Plant is CS Kasama Power
Plant (Ibaraki Prefecture)

The business profit/loss is calculated as rental income minus rental expenses
for each power plant, with depreciation accounting for 70-80% of rental
expenses. The top three power plants with the highest ratio of operating income
to rental income (average of the past three years) are CS Kasama (Ibaraki)(51.5%), CS Mashiki (Kumamoto) (48.4%) and CS Koriyama (Fukushima)(47.8%). Conversely, the top three lowest power plants are CS Ishikari
Shinshinotsu-mura Power Plant (Hokkaido) (29.3%), CS Marumorimachi Power
Plant (Miyagi) (30.3%) and CS Yusui-machi Power Plant (Kagoshima) (31.8%).
The five power plants acquired in FY12/2023 are not included in thecomparison, but their profitability has been relatively high in recent periods,
with business profit/loss ratios generally above 50%.

Portfolio Diversification
Accelerated in FY12/2023

The ratio of the top three properties in the portfolio was heavily skewed at
74.5% at the time of listing, including CS Mashiki-machi Power Station, andremained heavily skewed at 69.7% at the end of June 2023 among CS
Hidemachi No.2, CS Mashiki-machi Power Station and CS Oyamacho Power
Station. However, after additional acquisitions in FY12/2023, the ratio of the
top three properties decreased to 56.8%.

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Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)
Figure 7: Changes in Portfolio Income Diversification (Panel Output Basis)

Source: Company Data

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Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

2. Peer Comparison
1) Only CSIF Can Realize a "Vertically Integrated Model”
There are 5 Listed
Infrastructure Funds

There are a total of five listed infrastructure funds, including CSIF. In order of
output capacity, these are Enex Infrastructure Investment Corporation (243.4
MW) (listed in 2019), CSIF (226.4 MW) (listed in 2017), Japan Infrastructure
Fund Investment Corporation (152.8 MW) (listed in 2020), Tokyo Infrastructure
Energy Investment Corporation (69.8 MW) (listed in 2018) and Ichigo GreenInfrastructure Investment Corporation (25.8 MW) (listed in 2016).

Only CSIF Can Realize a"Vertically Integrated
Model”The respective sponsors are as follows; ITOCHU ENEX Corporation (TSE 8133)
and others for Enex Infrastructure Investment Corporation. Canadian Solar
Project for CSIF. Marubeni Corporation (TSE 8002) and subsidiaries (Mizuho
Bank and Mizuho Trust Bank) of Mizuho Financial Group, Ltd. (TSE 8411) forJapan Infrastructure Fund Investment Corporation and Advantech Co., Ltd.
(unlisted) which is a manufacturer of semiconductor manufacturing equipment
parts. And finally, for Tokyo Infrastructure Energy Investment Corporation,
Ichigo Co., Ltd. (TSE 2337) for Ichigo Green Infrastructure Investment
Corporation. Sponsored by a panel manufacturer, CSIF is the only company thathas been able to achieve a "Vertically Integrated Model".

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Canadian Solar Infrastructure Fund, Inc. | 9284
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Figure 8: Sponsors of Each Infrastructure Fund
Investment corporation
Canadian Solar
Infrastructure

Sponsor

The world's fifth largest solar panel manufacturer. Also
Canadian Solar Groupmanages power plant development and storage
batteries.

Itochu Enex Corporation

Enex Infrastructure

Business

Subsidiary of ITOCHU Corporation, engaged in sales of
LP gas, gasoline and electricity.

Sumitomo Mitsui Trust

A core company of the Sumitomo Mitsui Trust Holdings

Bank, Limited

Group.

Mercuria Investment,

Fund management business and proprietary

Co., Ltd.

investment business to manage its own funds.

Maiora Asset

Extensive investment experience in solar power

Management

generation (over 2 GW worldwide).
A general trading company in the Fuyo Group. Top-

Japan Infrastructure
Fund

Marubeni Corporation

ranked in the grain sector and power generation
business.

Mizuho Bank

A core company of the Mizuho Financial Group.

Mizuho Trust & Banking

A trust bank under Mizuho Financial Group.
Manufacturer of semiconductor manufacturing

Tokyo Infrastructure
EnergyAdvantec Co., Ltd.

plants.
Aioi Nissay Dowa
Insurance

Ichigo GreenInfrastructure

equipment components. Also develops solar power

Ichigo Inc.

Non-life insurance company under the MS&AD Group.
The company also manages J-REITs, centered on thereal estate securitization business.

Source: Prepared by Strategy Advisors, Based on Company Data

2) CSIF's Pipeline is the Largest Amongst the Infrastructure
Funds
Enex Infrastructure
Investment Corporation
Overtook CSIF to Lead
Output Capacity in 2023

The output capacity ranking membership of the 5 infrastructure funds had been
the since CSIF went public, but Enex Infrastructure Investment Corporation,
which has been expanding its asset scale at an annualized rate of 80%, took
the top spot in 2023. Meanwhile, No. 4 Tokyo Infrastructure Energy Investment
Corp. is growing at an annualized rate of 30%, a level similar to CSIF and Ichigo
Green Infrastructure Investment Corp. is not expanding its asset scale at all.

CSIF May be on Top Again
Due to the Abundance ofPipelines

Looking at the sponsor pipeline, for Enex Infrastructure Investment
Corporation, the number has rapidly declined from more than 240 MW as of2019 to only 25.3 MW currently. Therefore, the pace of asset scale expansion
is likely to be limited in the future; for CSIF, Japan Infrastructure Fund
Investment Corporation, and Tokyo Infrastructure Energy Investment

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Canadian Solar Infrastructure Fund, Inc. | 9284
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Corporation, their levels are generally stable at around 400 MW, close to 200
MW and over 100 MW, respectively. The output capacity of the pipelines has
been generally stable at over 300 MW, close to 200 MW and over 100 MW,
respectively; and the pace of growth is not expected to change significantly inthe future. Ichigo Green Infrastructure Investment Corporation continues tohave zero pipeline capacity.
Figure 9: Output Capacity of Each Infrastructure Fund (MW)Investment Corporation
Canadian Solar
Infrastructure
Enex Infrastructure
Japan Infrastructure
FundTokyo Infrastructure
EnergyIchigo GreenInfrastructure

2020

2020

2021

2021

2022

2022

2023

2023

H1

H2

H1

H2

H1

H2

H1

H2

119.8

123.0

183.9

183.9

183.9

183.9

183.9

226.4

40.2

40.2

139.8

139.8

155.5

155.5

240.8

243.4

30.4

30.4

57.3

57.3

90.0

103.2

152.8

152.8

20.1

46.0

46.0

46.0

46.0

69.8

69.8

69.8

25.8

25.8

25.8

25.8

25.8

25.8

25.8

25.8

*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

Figure 10: Pipeline Capacity of Each Infrastructure Fund (MW)Investment Corporation
Canadian Solar
Infrastructure
Enex Infrastructure
Japan Infrastructure
FundTokyo Infrastructure
EnergyIchigo GreenInfrastructure

2020

2020

2021

2021

2022

2022

2023

2023

H1

H2

H1

H2

H1

H2

H1

H2

354.9

383.5

408.7

390.9

375.9

367.5

367.5

392.8

234.4

121.8

121.8

121.8

121.8

110.7

25.3

25.3

200.0

200.0

200.0

200.0

200.0

150.0

150.0

150.0

104.0

104.0

104.8

108.3

104.8

123.2

123.2

128.4

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

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Canadian Solar Infrastructure Fund, Inc. | 9284
CSIF's Average Power Plant
Output Capacity is Second
Only to Enex Infrastructure
Investment Corporation(TSE)

The current number of properties is 12 for Enex Infrastructure Investment
Corporation, 31 for CSIF, 45 for Japan Infrastructure Fund Investment
Corporation, 23 for Tokyo Infrastructure Energy Investment Corporation and 13
for Ichigo Green Infrastructure Investment Corporation. The average output
capacity of each power plant is 20.3 MW for Enex Infrastructure Investment
Corporation, 7.3 MW for CSIF, 3.4 MW for Japan Infrastructure Fund Investment
Corporation, 3.0 MW for Tokyo Infrastructure Energy Investment Corporationand 2.0 MW for Ichigo Green Infrastructure Investment Corporation. The top
three properties in the portfolio account for 72.3% of Enex Infrastructure
Investment Corporation, 56.8% of CSIF, 34.6% of Japan Infrastructure Fund
Investment Corporation, 48.1% of Tokyo Infrastructure Energy Investment
Corporation and 39.5% of Ichigo Green Infrastructure Investment Corporation,
so Enex Infrastructure Investment Corporation has the largest bias.

3) CSIF Stands Out in Terms of Profitability
CSIF Stands Out in Termsof Operating Profit Margin& ROIC

Looking at profitability, CSIF, Enex Infrastructure Investment Corporation,
Tokyo Infrastructure Energy Investment Corporation, Japan Infrastructure Fund
Investment Corporation, Ichigo Green Infrastructure Investment Corporation,and Ichigo REIT, Inc. have outstanding operating profit ratios over the past
three years: 39.2% for CSIF, 31.1% for Enex Infrastructure Investment
Corporation, 28.8% for Tokyo Infrastructure Energy Investment Corporation,
25.0% for Japan Infrastructure Fund Investment Corporation and 24.7% for
Ichigo Green Infrastructure Investment Corporation. Here, CSIF stands out.
ROIC for the past three years has been 1.8% for CSIF, 1.2% for Enex
Infrastructure Investment Corporation, 1.1% for Tokyo Infrastructure Energy
Investment Corporation, 1.2% for Japan Infrastructure Fund Investment
Corporation and 1.4% for Ichigo Green Infrastructure Investment Corporation,
again with CSIF leading the pack.

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Figure 11: Trends In Operating Margin for Each Infrastructure Fund
Investment Corporation
Canadian Solar
Infrastructure
Enex Infrastructure
Japan Infrastructure
FundTokyo Infrastructure
EnergyIchigo GreenInfrastructure

2020

2020

2021

2021

2022

2022

2023

2023

3-Year

H1

H2

H1

H2

H1

H2

H1

H2

Average

36.0%

35.5%

42.6%

37.5%

42.9%

37.2%

33.5%

40.7%

39.2%

19.9%

20.5%

29.2%

27.2%

37.1%

32.6%

26.8%

32.5%

31.1%

41.6%

36.4%

25.3%

22.7%

18.2%

28.5%

22.9%

29.0%

25.0%

38.9%

30.7%

34.6%

23.2%

33.8%

30.4%

31.3%

20.9%

28.8%

30.5%

18.9%

29.0%

19.6%

31.1%

20.3%

28.1%

19.5%

24.7%

*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

Figure 12: ROIC Trends for Each Infrastructure Fund
Investment Corporation
Canadian Solar
Infrastructure
Enex Infrastructure
Japan Infrastructure
FundTokyo Infrastructure
EnergyIchigo GreenInfrastructure

2020

2020

2021

2021

2022

2022

2023

2023

3-Year

H1

H2

H1

H2

H1

H2

H1

H2

Average

1.7%

1.8%

1.7%

1.7%

2.2%

1.8%

1.5%

2.0%

1.8%

0.8%

0.9%

1.0%

0.9%

1.5%

1.3%

1.0%

1.3%

1.2%

1.3%

1.9%

1.0%

1.2%

0.8%

1.4%

0.9%

1.4%

1.1%

1.9%

0.9%

1.5%

0.9%

1.6%

1.1%

1.3%

0.9%

1.2%

1.5%

1.0%

1.5%

1.1%

1.7%

1.2%

1.6%

1.2%

1.4%

*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

16

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)4) CSIF Tops the List in Terms of Actual Performance, Considering
Dividend Yield & the Rate of Change in BPS
CSIF's Dependence onDistributions in Excess ofProfits is Less than Half thatof Other Infrastructure
Funds

Despite the difference in profitability, the dividend yield (distribution yield) of
both infrastructure funds is about 6~7%, which is not much different. This is
the result of the low profitability of Infrastructure Funds making up for this byincreasing their dependence on excess profit distributions among the profit
distributions and excess profit distributions, which are components of dividends(distributions). CSIF's dependence on excess distributions (dividends ÷ excess
profits) over the past three years is less than half that of other companies, with
CSIF accounting for 21%, Enex Infrastructure Investment Corporation 48%,
Tokyo Infrastructure Energy Investment Corporation 43%, Japan Infrastructure
Fund Investment Corporation 44% and Ichigo Green Infrastructure Investment
Corporation 54%.

Differences in Dependence
on Excess Distributions are
Reflected in the Increase or
Decrease in BPS

The difference in dependence on excess distributions is reflected in the
difference in the increase or decrease in net assets per share (BPS). In the past
three years, CSIF has seen positive BPS growth rates of +3.1%, Enex
Infrastructure Investment Corporation, Tokyo Infrastructure Energy Investment
Corporation, Japan Infrastructure Fund Investment Corporation, and Ichigo
Green Infrastructure Investment Corporation, respectively, have been positiveat -5.3%. In other words, infrastructure funds other than CSIF are maintaining
dividend levels around 6% by devaluing their net assets. If we calculate the BPS
change yield for each infrastructure fund, it will be about 6% for CSIF, about
5% for Enex Infrastructure Investment Corporation, about 4% for Tokyo
Infrastructure Energy Investment Corporation, about 4% for Japan
Infrastructure Fund Investment Corporation and about 3% for Ichigo GreenInfrastructure Investment Corporation in one year, 2023.
* Yield including BPS change = dividend yield + (BPS change rate ÷ PBR). As the denominator of
the BPS change rate is net assets per share (BPS), we divided it by PBR to add it up with thedividend yield.

17

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Figure 13: Dividend Yield of Each Infrastructure Fund
Investment Corporation
Canadian Solar
Infrastructure
Enex Infrastructure
Japan Infrastructure
FundTokyo Infrastructure
EnergyIchigo GreenInfrastructure

2020

2020

2021

2021

2022

2022

2023

2023

3-Year

H1

H2

H1

H2

H1

H2

H1

H2

Average

6.5%

5.5%

5.8%

6.1%

6.2%

6.2%

6.2%

6.7%

6.2%

6.5%

6.7%

6.3%

6.8%

9.9%

6.4%

6.6%

6.9%

6.6%

1.2%

4.2%

6.0%

6.5%

6.6%

6.5%

6.6%

6.8%

6.5%

5.1%

6.2%

6.0%

6.5%

6.2%

6.6%

6.4%

6.5%

6.3%

6.6%

6.1%

5.7%

5.8%

6.0%

5.9%

5.6%

5.8%

5.8%

*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

Figure 14. Profit Distribution Yields of Infrastructure Funds
Investment Corporation
Canadian Solar
Infrastructure
Enex Infrastructure
Japan Infrastructure
FundTokyo Infrastructure
EnergyIchigo GreenInfrastructure

2020

2020

2021

2021

2022

2022

2023

2023

3-Year

H1

H2

H1

H2

H1

H2

H1

H2

Average

4.6%

4.6%

4.6%

4.6%

5.6%

5.7%

4.7%

5.1%

5.0%

3.5%

2.7%

2.5%

2.9%

4.7%

3.8%

3.1%

2.9%

3.2%

0.6%

3.1%

3.9%

4.0%

4.0%

3.6%

3.5%

3.4%

3.6%

3.6%

4.1%

3.3%

3.7%

3.7%

4.5%

3.5%

3.3%

3.7%

2.8%

2.6%

2.5%

2.6%

2.9%

2.9%

2.6%

2.6%

2.7%

*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

18

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Figure 15. Dependence on Excess Distributions of Each Infrastructure Fund
(distributions ÷ excess profits)
Investment Corporation
Canadian Solar
Infrastructure
Enex Infrastructure

2020

2020

2021

2021

2022

2022

2023

2023

3-Year

H1

H2

H1

H2

H1

H2

H1

H2

Average

19%

16%

25%

23%

0%

16%

31%

18%

18%

60%

60%

57%

57%

41%

38%

68%

48%

48%

16%

52%

23%

53%

35%

61%

41%

44%

59%

32%

56%

24%

40%

50%

47%

43%

Japan Infrastructure
FundTokyo Infrastructure
EnergyIchigo GreenInfrastructure

32%
58%

56%

52%

54%

54%

*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

Figure 16: Net Assets Per Share (BPS) of Each Infrastructure Fund
Investment Corporation

2020

2020

2021

2021

2022

2022

2023

2023

H1

H2

H1

H2

H1

H2

H1

H2

93,99893.397

104,463

103,665

103,818

103,053

101,898

103,280

(YoY)

-2.1%

-1.3%

+11.1%+11.0%

-0.6%

-0.6%

-1.8%

+0.2%

Enex Infrastructure

86,894

88,11084,932

86,26382,04281,54280,25380,952

(YoY)

-3.1%

-3.9%

-2.3%

-2.1%

-3.4%

-5.5%

-2.2%

-0.7%

91,80893,12789,805

89,116

87,956

86,68385,25784.065

-

-

-2.2%

-4.3%

-2.1%

-2.7%

-3.1%

-3.0%

89,582

87,99887,32886,02086,32288,36585,98185,028

-2.6%

-1.3%

-2.5%

-2.2%

-1.2%

+2.7%

-0.4%

-3.8%

44,09440,86642,01838,777

40,14936,632

37,77634,377

-4.9%

-4.5%

-4.7%

-5.1%

-4.4%

-5.5%

-5.9%

-6.2%

Canadian Solar
Infrastructure

Japan Infrastructure
Fund
(YoY)
Tokyo Infrastructure
Energy(YoY)
Ichigo GreenInfrastructure(YoY)*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

19

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Figure 17: BPS Change in Unrealized Yield Calculations
Investment corporation
Canadian Solar

2020

2020

2021

2021

2022

2022

2023

2023

H1

H2

H1

H2

H1

H2

H1

H2

4.8%

4.6%

15.0%

15.4%

5.7%

5.7%

4.6%

6.9%

3.6%

2.9%

4.3%

4.8%

6.8%

1.7%

4.7%

6.2%

4.0%

2.3%

4.6%

3.9%

3.7%

3.9%

Infrastructure
Enex Infrastructure
Japan Infrastructure
FundTokyo Infrastructure

2.8%

5.0%

3.8%

4.5%

5.2%

9.2%

6.0%

2.8%

2.9%

3.1%

2.8%

2.9%

3.5%

3.1%

2.6%

2.8%

EnergyIchigo GreenInfrastructure*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

5) CSIF is Preferred by Foreign Investors
In Terms of the Compositionof Foreign Investors, CSIF
Stands Out from its
Competitors at 9.6%

Looking at the ratio of unitholders to the number of investment units, the ratioof foreign corporations and individuals to investment corporations other than
CSIF is about 1.0~2.0%, while CSIF stands out at 9.6%, making it the preferred
position amongst foreign investors. In addition, the ratio of sponsors is in the
double digits only for CSIF and Ichigo Green Infrastructure Investment
Corporation, and the degree of alignment between unitholders and sponsors ishigher than that of other investment corporations, making it easier forgovernance to be effective. The three investment corporations with a relatively
high proportion of individual investors in Japan at about 70% are Enex
Infrastructure Investment Corporation, Japan Infrastructure Fund Investment
Corporation and Tokyo Infrastructure Energy Investment Corporation.

20

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)
Figure 18. Status of Unitholders of Each Infrastructure Fund (# of Units)
Domestic
Investment Corporation

Sponsors

Financial
Institutions

Canadian Solar
Infrastructure
Enex Infrastructure
Japan Infrastructure
FundTokyo Infrastructure
EnergyIchigo GreenInfrastructure

Foreign
Domestic

Domestic

Corporations

Corporations

Individuals&
Individuals

14.5%

13.8%

7.2%

54.8%

9.6%

2.5%

12.2%

10.6%

73.5%

1.0%

1.6%

15.3%

12.4%

69.5%

1.0%

3.6%

14.8%

7.0%

73.7%

0.9%

27.8%

11.2%

5.8%

53.2%

1.9%

* Figures for the most recent fiscal year of each infrastructure fund are described.
* Since the investment ratio of Mizuho Bank, the sponsor of Japan Infrastructure Fund Investment Corporation, is unknown, it
is possible that the figure of domestic financial institutions of up to 0.8% is actually low and the figure of sponsor is high.
Source: Created by Strategy Advisors from Each Company's Materials

21Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

3. Competitive Advantage Created by the
Difficulty of Imitation
Management scholar Jay B. Barney has identified "difficulty of imitation" as aresource that provides a company with a competitive advantage. Imitationdifficulty means that it is difficult for other companies to imitate a product andit takes a great deal of time and money to do so.
CSIF's difficulty in imitation is its "Vertically Integrated Model," which sponsors
the world's fifth largest panel manufacturer.
CSIQ's Power Plant Pipeline
is 27 GW Worldwide, 70xthat of Japanese Projects

CSIQ, the sponsor group of CSIF, is the world's fifth largest panel manufacturer;
CSIQ has been in the solar power plant development business since 2010 andhas built up its knowledge over the years, starting to build power plants in Japan
in 2012. Geographically, CSIQ is developing solar power plants in North
America, South America, Europe, Africa, China, Japan, Southeast Asia and otherparts of the world, with a current global pipeline of approximately 27,000 MW,
nearly 70 times the pipeline it has in Japan (392.8 MW). CSIQ's knowledge ofpower plant construction is considered to be among the best in the world, as
the company has been constructing power plants in various environments
around the world for more than a decade.

Figure 19: CSIQ's Global Pipeline

Source: CSIQ Data

22

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)
CSIQ's Expertise in Panel
Characteristics Can be
Applied to Power Plant
Development & Operations

In addition, CSIQ uses its own panels in the solar power plants it develops.
Naturally, CSIQ is well versed in the characteristics of its own panels, so it
selects sites and designs power plants based on panel characteristics, thereby
ensuring that power plants are optimized for highly efficient power generationand stable long-term operation. Furthermore, as a panel manufacturer, CSIQ isconstantly researching the characteristics of panels made by other companies.
Therefore, when CSIF considers purchasing solar power plants using panels
manufactured by other companies from third parties in the future, it can makeuse of CSIQ's knowledge of the characteristics of the panels and the high qualityof the power plants.

O&M has Achieved a
Double-Checking System
in Japan & Canada

For O&M, CSOMJ monitors operations in Japan in real time using a generalpurpose industrial system called SCADA. In addition, Canadian Solar O&M Inc.
in Ontario, Canada, monitors operations through a global integrated
management system called CS Eye that operates 24/7. This double-checking
system, which overcomes the time difference made possible by being a global
company, ensures the stable operation of their solar power plants.

China's Top Four Listed
Solar Panel Makers are Not
Developing Large-Scale
Projects in JapanThe four companies that exceed CSIQ in solar panel production volume are alllisted in China. They are Jinko Solar Co Ltd (Shanghai 688223), Trina Solar Co
Ltd (Shanghai 688599), LONGi Green Energy Technology Co Ltd (Shanghai
601012) and JA Solar Technology Co Ltd (Shenzhen 002459), but they are notdeveloping large-scale solar power plants in Japan.

23

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

4. Domestic Photovoltaic Market and CSIF's
Growth Strategy
1) Domestic Market is Expected to Grow at 5-7% Per Annum
Through 2030
Proportion of FIT Projects
Gradually Declining

The cumulative amount of PV power generation installed in 2030 under the
Sixth Basic Energy Plan is 117.6 GW and is expected to grow at an annual rateof 5 to 7%, with about 5 to 6 GW installed each year for the next seven years
from 70.7 GW as of March 2023. According to the Yano Research Institute,
about 80% of the approximately 5 GW of installed capacity in 2023 will comefrom FIT projects, while the percentage is expected to gradually decline
thereafter to about 15% by 2030.

Figure 20: Japanese Government's Aggressive Stance in Pushing Renewable Energy Diffusion

Source: Company Data

24

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)2) CSIF’s Growth is Expected to Continue to Outpace Domestic
Market Growth
All of CSIF's Medium-Term
Growth Targets Can be
Achieved with FIT Projects

All of CSIF's existing power plants (total capacity of 226.4 MW) and pipelines(total capacity of 392.8 MW) are FIT projects. CSIF has set a goal of more thandoubling its asset size from the current \97.01bn to \200bn in the medium
term; off of which is possible to achieve all of it through FIT projects. Assumingthat the total capacity is doubled by 2026, it will grow at an annual rate of 26%.
The scale is expected to expand at a level that far exceeds the growth rate of
the overall market.

Some Investment
Corporations in the Same
Industry Do Not Present
Mid-Term Targets

Tokyo Infrastructure Energy Investment Corporation has set a similar goal tothat of CSIF, increasing its asset size from \29.1bn to \50 bn from FIT projects
alone, while Japan Infrastructure Fund Investment Corporation has increased
its asset size from \67.6bn yen to \100bn in the medium term, including nonFIT projects, wind power, biomass and hydroelectric power, etc. Enex
Infrastructure Investment Corporation has not indicated a medium-term target.

Increasing the Allowabilityof Acquiring Additional
Large Power Plants as Asset
Size Expands Will Make It
Easier to Realize
Profitability Gains

The benefits of expanding asset scale include a lower administrative personnel
cost ratio, improved O&M efficiency due to multiple solar power plants locatednearby and lower interest rates on borrowings due to improved
creditworthiness. At present, CSIF and Enex Infrastructure Investment
Corporation are the only two companies with power plants with output
capacities of 30 MW or more. The more options a company has in acquiring
power plants, the easier it will be to increase profitability and the more likely it
will be to increase its share price.

The Boom in the SecondaryMarket Triggered by Output
Curtailment is also a
Tailwind for CSIFIn addition, power plant owners (individuals, overseas companies, etc.), who
are not happy with the expansion of output curtailment that started in 2018
and will be extended to 2022, have been trying to sell their power plants; andso the secondary market has been active, creating a favorable environment formarket-leading CSIF to further expand its scale through acquiring assets at
favorable terms in this highly favorable environment.

3) If the Debt Repayment Period can be Aligned with the
Depreciation Period, the Speed of Business Growth can be
Accelerated
Potential to Accelerate
Output Capacity Growth
Speed by at Least 2 MW
Annually

The contractual repayment of loans procured by CSIF from financial institutions
for the acquisition of power plants is not for 25 to 30 years until the completionof depreciation, but for 20 years until the end of the FIT. The short repayment
period has the effect of reducing cash reserves. If the repayment period could
be extended to 25 to 30 years, which would coincide with the depreciation
period, the speed of CSIF's business growth could be further accelerated.

25

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)
For example, the contracted repayment amount in 2023 was approximately\2.6bn, but if this amount could be reduced by 2/3 to \1.7bn, or \900mn, it
would be possible to acquire additional power plants worth more than 2 MW in
one year (calculated at the generally accepted market price of \400mn for 1
MW).
Figure 21: CSIF's Revenue Picture

Source: Company Data

26

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

5. Current Performance Trends
1) Results for FY12/2023
Net Income +30.5% YoY
in FY12/2023

For FY12/2023, CSIF reported sales of \4.5bn (+22.2% YoY), operating profitof \1.8bn (+40.7% YoY), recurring profit of \1.3bn (+30.6% YoY) and net
income of \1.386bn (+30.5% YoY). The acquisition of five new assets on July19, 2023 and one property on December 1, 2023 contributed to the increase insales and profit.

Controlling the Assumed
Lost Variable Rents by
Introducing ‘On-Line’
Curtailment Controllers

The number of times of output curtailment increased significantly from 24 times
in FY12/2022 to 151 times in FY12/2023, but the introduction of on-line
curtailment controllers enabled a shift from all-day control to hourly curtailment,
limiting output curtailment to peak hours of power generation and the assumed
lost variable rent was contained to a certain degree. In FY2023/6, the numberof output curtailment
was 691 times, but this is due to seasonal factors and it is due to a supplydemand mismatch in which power generation increases due to the increase insunshine hours in spring, while demand for electricity such as heating andcooling is low.

Concrete Measures Have
Been Taken at theGovernment Level to
Reduce Output Curtailment

With regard to output curtailment, which is an obstacle to the spread ofrenewable energy, measures on the supply, demand and grid sides are being
considered at the government level. Specific measures have been announced in
December 2023 as the "Renewable Energy Output Curtailment Measures
Package." In November 2023, the Listed Infrastructure Fund Council, to which
CSIF belongs, submitted a questionnaire and opinion on output curtailment inNovember 2023 requesting highly transparent disclosure of information on
output curtailment from some power transmission and distribution companies.

Figure 22. Renewable Energy Output Curtailment Measures Package

Source: Company Data

27

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Figure 23: Performance Trends (\ mn)
FY End

12/20

6/21

12/21

6/22

12/22

6/23

12/23

6/24 CoE

Sales (Rental Revenues)

2,414

3,425

3,587

4,061

3,715

3,453

4,538

4,500

15.6%

46.9%

48.6%

18.6%

3.6%

-15.0%

22.2%

30.3%

Operating expenses

1,555

1,966

2,243

2,317

2,332

2,297

2,691

2,829

Rental expense

1,409

1,781

2,034

2,091

2.115

2,083

2,415

Asset management fee

61

88

112

127

116

109

169

Administrative service fees

19

23

28

28

27

29

28

Director’s compensation

2

2

2

2

2

2

2

Taxes and Duties

0

2

0

0

0

0

3

Other

63

69

67

68

72

73

74

858

1,459

1,345

1,744

1,383

1,156

1,847

1,671

35.5%

42.6%

37.5%

42.9%

37.2%

33.5%

40.7%

37.1%

Non-operating income

37

91

9

3

40

57

2

Interest income

0

0

0

0

0

0

0

Dividends

-

0

-

0

-

0

-

Gain on forfeiture of unclaimed dividends

-

-

-

-

-

0

1

Insurance income

1

79

8

-

39

57

-

Guarantee commission received

-

-

-

-

-

-

1

Interest on refund

-

0

0

-

-

-

-

Miscellaneous income

36

12

0

3

0

0

0

Non-operating expenses

178

476

230

237

209

209

462

111

147

160

151

149

141

184

Interest on investment corporation bond

4

17

19

19

19

19

19

Investment corporation bond issuance cost

1

3

3

3

3

3

3

Borrowing-related expenses

57

213

38

38

38

38

213

Investment units issuance costs

-

73

-

-

-

8

42

Loss on retirement of noncurrent assets

5

24

10

27

-

-

1

717

1,074

1,123

1,510

1,214

1,004

1,387

1,404

29.7%

31.4%

31.3%

37.2%

32.7%

29.1%

30.6%

31.2%

717

1,074

1,123

1,510

1,214

1,004

1,387

1

1

1

1

1

1

1

Net Income

716

1,073

1,122

1,509

1,213

1,003

1,386

1,403

NPM

29.7%

31.3%

31.3%

37.2%

32.7%

29.0%

30.5%

31.2%

YoY

Operating Income
OPM

Interest expense

Ordinary Income
ROS

Income Before Income Taxes
Total income taxes

Source: Company Data

28

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)2) FY6/2024 Forecasts and Beyond
Net Income for FY6/2024
is Expected to Increase
31.2% YoY

For FY6/2024, the company forecasts net sales of \4,500mn (+30.3% YoY),
operating income of \1,671mn (+37.1% YoY), recurring income of \1,404mn(+31.2% YoY) and net income of \1,403mn (+31.2% YoY). The company
expects both sales and income to increase by about 30% from FY6/2023 due toan increase in output capacity from asset acquisitions made in FY12/2023 andthe installation of on-line output curtailment equipment. Cash distributions perunit (including distributions in excess of earnings) are expected to be \3,775,
an increase of \25 versus FY12/2023.

Forecasts May be Raised
Depending on Asset
Acquisitions

The forecast for FY12/2024 and FY6/2025 is based on the same level of sales,
income and distribution per unit as FY6/2024. However, these figures are basedon the assumption that further acquisitions of solar power plants will not be
incorporated and the figures may be higher if further asset acquisitions are
made.

29

Canadian Solar Infrastructure Fund, Inc. | 9284
6.

ESG

(TSE)

First Listed Infrastructure
Fund to Comply with TCFD

In February 2022, CSIF implemented disclosures in line with the TCFD (Task
Force on Climate-related Financial Disclosures), a body established by the
Financial Stability Board (FSB) at the request of the G20 to examine climaterelated disclosures and how financial institutions should respond. The FSB
recommended the disclosure of "Governance", "Strategy", "Risk Management",and "Indicators and Targets" as recommended items for climate change-related
information disclosure and this is in response to this recommendation. CSIF was
the first listed infrastructure fund to comply with this recommendation.

Highest Rating for Green
Finance Frameworks

In February 2023, we selected ESG issues (materiality) that are of particularimportance to CSIF and published an ESG report that shows KPI’s and specificmeasures related to the resolution of materiality items. In June, the company
revised its green finance framework and received the highest rating of Green1(F)from JCR.

Conforms to European
SFDR

Furthermore, CSIF's disclosures are in compliance with the Sustainability
Related Disclosure Rules (SFDR), which were established in Europe to prevent
greenwashing of investment products (making them appear as if they areenvironmentally friendly).

Implementing
Environmentally andSocially Conscious
Initiatives in the Area
Where the Power Plant is
LocatedIn each area where the power plant is located, in consideration of rare species
such as goshawks, CSIF refrained from using chainsaws and colored fences inprotective colors (CS Oyamacho Power Plant), sponsorship of a walking
competition on the historical site course that Francis Xavier is said to havepassed (CS Hinodecho / Hinodecho 2nd Power Plant), donation of parks (CSOyamacho Power Plant). CSIF is making efforts to consider the environment andsociety, such as donating condolences for typhoon damage (CS MarumorichoPower Plant).

Figure 24: ESG Report

Source: Company Data

30

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)
Figure 25. Highest Rating for Green Finance Frameworks

Source: Company Data

31

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

7. Valuation

1) Short-Term Oversold Sentiment for Infrastructure Funds in a
Rising Interest Rate Environment
Infrastructure Fund's Share
Price Remained Stable
Compared to REIT Share
Prices, But Recently
Declined Due to RisingInterest Rates

Although the amount of electricity sold by infrastructure funds varies depending
on weather and output curtailment conditions, the unit price of electricity solditself remains constant for up to 20 years, so their share prices tend to be morestable than those of REIT’s. However, rising interest rates are a negative factor
common to both infrastructure funds and REIT’s and rising interest rates since
mid-2023 have led to downward pressure on stock prices (upward pressure on
dividend yields).

Figure 26: TSE Funds Index, TSE REIT Index and 2-Year Bond Yield
125

0.30%

※For the two indices, the 1/2021 level is set as 100.

120

0.25%
0.20%

115

0.15%

110

0.10%

105

0.05%
0.00%

100

-0.05%
95-0.10%-0.15%

1/20232/20233/20234/20235/20236/20237/20238/20239/2023
10/2023
11/2023
12/2023
1/2022
2/2022
3/2022
4/2022
5/2022
6/2022
7/20228/20229/2022
10/2022
11/2022
12/2022
1/20232/20233/20234/20235/20236/20237/20238/20239/2023
10/2023
11/2023
12/2023
1/20242/20243/20244/202490

TSE Infrastructure Funds Index

TSE REIT Index

2-Year Bond Yield（RHS）

Source: Prepared by Strategy Advisors

There is a Possibility That
the Stock Prices of Multiple
Infrastructure Funds Will
Rebound Due to Short-Term
Oversold Sentiment

A comparison of the changes in the 2-year Treasury yields and the dividend
yields of each infrastructure fund in April 2023 and April 2024 shows that thedividend yields of most infrastructure funds have risen in line with the trend of
the rise in 2-year bond yields. However, the 2-year Treasury yield is 0.36%,
while the dividend yield of several infrastructure funds has risen above 0.36%.
Therefore, the stock price may be judged to be oversold and rebound in the
short term.

32

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Figure 27: Change in 2-Year Bond Yield and Dividend Yield of Each Infrastructure Investment
Corporation (May 2023 and May 2024)
Investment Corporation
2-Year Bond Yield
Canadian Solar
Infrastructure
Enex Infrastructure
Japan Infrastructure
FundTokyo Infrastructure
EnergyIchigo GreenInfrastructure

May 2023

May 2024% Change-0.05%

0.31%+0.36%

6.09%

6.60%

+0.50%

6.60%

6.95%

+0.35%

6.59%

6.98%

+0.39%

6.09%

6.54%

+0.45%

5.76%

5.39%

-0.37%

Source: Prepared by Strategy Advisors, Based on Company Data

2) Comparing Long-Term Trends, CSIF is Relatively Oversold
Generally Flat in the Long
Term Except for Ichigo
Green Infrastructure

Looking at the long-term share price trends of each infrastructure fundindividually, they have generally remained flat, except for Ichigo GreenInfrastructure Investment Corporation, which has the highest dividend payout
ratio at twice that of CSIF.

Figure 28: Infrastructure Fund Share Price Trends

Source: Prepared by Strategy Advisors

33

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)
Long-Term Oversold
Sentiment May Lead toRelative Gains in CSIF
SharesHowever, only CSIF has generally maintained the level of its BPS, while otherinfrastructure funds have reduced their BPS. As a result, the share price has
generally remained flat and CSIF's P/B ratio has declined noticeably. If themarket becomes more aware of the BPS-included yield, CSIF's share price may
rise relative to other infrastructure funds.

Figure 29: P/B Ratios & Yields including BPS Changes for Each Infrastructure Fund
Investment Corporation

2020

2020

2021

2021

2022

2022

2023

2023

3-Year

H1

H2

H1

H2

H1

H2

H1

H2

CAGR

1.21

1.43

1.21

1.18

1.18

1.20

1.19

1.08

-4.8%

4.8%

4.6%

15.0%

15.4%

5.7%

5.7%

4.6%

6.9%

-

1.06

1.02

1.11

1.02

1.11

1.16

1.13

1.08

+2.1%

3.6%

2.9%

4.3%

4.8%

6.8%

1.7%

4.7%

6.2%

-

1.03

1.05

1.11

1.03

1.03

1.06

1.06

1.04

+0.3%

-

-

4.0%

2.3%

4.6%

3.9%

3.7%

3.9%

-

1.13

1.06

1.18

1.12

1.14

1.04

1.06

1.02

-1.6%

2.8%

5.0%

3.8%

4.5%

5.2%

9.2%

6.0%

2.8%

-

1.30

1.52

1.65

1.74

1.77

1.95

1.93

2.07

+12.3%

2.9%

3.1%

2.8%

2.9%

3.5%

3.1%

2.6%

2.8%

-

Canadian Solar
Infrastructure(BPS Change
Unrealized Yield)
Enex Infrastructure(BPS Change
Unrealized Yield)
Japan Infrastructure
Fund(BPS Change
Unrealized Yield)
Tokyo Infrastructure
Energy(BPS Change
Unrealized Yield)
Ichigo GreenInfrastructure(BPS Change
Unrealized Yield)*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

3) Increased Market Capitalization May Result in a Liquidity
Premium
Market Capitalization
Increase Through Future
Pipeline Acquisitions Could
Lead to Higher Share Price

In terms of market capitalization, even CSIF, the company with the largest
market capitalization, is not large at approximately \50bn. In the future, as
market capitalization increases and liquidity improves through pipelineacquisitions, the investor base will expand, which may lead to an increase in
the share price in the form of a liquidity premium.

34

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)
Strong Fundraising Capacity
and Strong Financial BaseSupport Steady Pipeline
Acquisition Execution

Acquiring a pipeline requires an elevated level of financing capacity and a strong
financial base to support it. CSIF has a stable lender formation of a total of 23
financial institutions, mainly the 3 megabanks, SBI Shinsei Bank and Sumitomo
Mitsui Trust Bank; and its funding capacity is extremely high. This funding
system is being strengthened day by day as CSIF continues to maintain its trackrecord of stably controlling LTV at around 50%. In addition, the fixed interest
rate ratio of loans procured from these financial institutions is at a prominentlevel of about 90%, indicating that the Bank has a strong interest rate risesystem.

Figure 30: Market Capitalization of Each Infrastructure Fund (\ mn)
Investment Corporation
Canadian Solar
Infrastructure

2020

2020

2021

2021

2022

2022

2023

2023

H1

H2

H1

H2

H1

H2

H1

H2

26,37930,841

48,91247,44347,36547,94547,01750,551

8,475

8,218

33,02230,71931,90532,98837,702

48,624

6,914

7,200

13,41812,327

19,75023,16733,80332,827

4,641

10,356

11,467

10,711

10,922

16,545

16,402

15,541

5,900

6,445

7,136

6,950

7,321

7,362

7,496

7,311

Enex Infrastructure
Japan Infrastructure
FundTokyo Infrastructure
EnergyIchigo GreenInfrastructure*Infrastructure Investment Corp. has two fiscal years, one ending in June/December and the other in May/November, and thefigures for the May and June fiscal years are shown in H1.
Source: Prepared by Strategy Advisors, Based on Company Data

4) Business Value That is Not Factored into Market Capitalization
Only the Next 25~30 years
are Factored into theProperty Valuation

The current property valuation based on third-party reports is conducted overa period of 25~30 years, which is the FIT period of 20 plus 5~10 years, andthe market capitalization of Infrastructure Fund is also a figure formed basedon 25~30 years of property evaluation. However, since the grid is linked, it does
not actually mean that power generation will not be lost after 25~30 years, andprofits can be obtained through repowering in FIP and Post FIT, corporate PPA,
and the use of storage batteries. The value of business after 25~30 years has
not been factored into the current market capitalization, and if the market's
awareness of this reality increases, it may lead to an increase in stock prices.

35

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)5) Renewable Energy-Related Investments Are Preferred Globally
There has been a Global
Preference for Investment
in Renewable EnergyRelated Stocks

A look at the market capitalization of the world's major REIT stocks over the
past five years shows that the market capitalization of stocks that invest not
only in renewable energy-related assets but also in warehouses and data
centers that have solar panels installed on the roofs of their facilities or use
100% renewable energy as their power source has increased significantly. The
market capitalization of such stocks has increased significantly. This is a resultof the global preference for investment in renewable energy-related stocks.

Figure 31: Top 10 Global REITs by Market Capitalization (as of December 31, 2023) & 5 Major REITs
Focusing on Renewable Energy & Japanese Infrastructure Funds#

REIT/Investment Corporation

Type Of Industry

1

Prologis

2

American Tower

3

Equinix

Data Center

4

Public Storage

5

Crown Castle

6

Welltower

7

Market5 YearRenewable

Capitalization

Rate Of

Energy(\ bn)

Change18,475127.0%

15,09536.5%

11,342

128.4%

Warehouse

8,045

50.7%

Communication

7,494

6.0%

Health Care

7,486

29.9%

Simon Property Group

Retail6,980-15.1%

8

Realty Income Corp.

Retail

6,235

-8.9%

9

Digital Realty Trust

Data Center

6,114

26.3%

10

Extra Space Storage

Warehouse

5,081

77.2%

-

Iron Mountain

Warehouse

〇

3,065

120.3%-

Kimco Realty Corp.

Shopping Center

〇

1,982

114.0%-

Stag Industrial

Warehouse

〇

1,069

163.1%

Renewable Energy〇

460

166.1%-

Hannon Armstrong Sustainable
Infrastructure CapitalIndustry

Focus On〇

Communication〇-

Farmland Partners

Agricultural Land〇90

323.2%-

Canadian Solar Infrastructure

Renewable Energy〇

51130.9%-

Enex Infrastructure

Renewable Energy

〇

49

-

-

Japan Infrastructure Fund

Renewable Energy

〇

33

-

-

Tokyo Infrastructure Energy

Renewable Energy〇

16

303.3%-

Ichigo Green Infrastructure

Renewable Energy

〇

7

27.7%

*Exchange rate is calculated at \150 to the dollar.
Source: Prepared by Strategy Advisors, Based on Company Data

36

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)6) Infrastructure-Related Funds
Capacity of ¥50 Trillion
The Need for Investment
in Infrastructure-Related
Assets is Increasing Every
Year

have

a

GlobalInvestment

According to S&P Global, global investment capacity for infrastructure-related
funds (both listed and unlisted) will total $339.3 bn as of January 2024. The
investment capacity itself has been expanding every year from $275.6 bn in2020 to $328.9 bn in 2023, indicating a growing need for investment ininfrastructure-related assets.

Figure 32: Global Infrastructure-Related Funds (including Unlisted Funds) Investment Capacity ($ bn)

Source: S&P Global

37

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

8. Risk Factors

Although there are no major risks to keep watch off at this point, thefollowing four risks can be identified as they may prevent the company's
performance from growing as much as planned.
① There is a risk of reduced power generation if weather conditions worsen.
However, the minimum guaranteed rent (70% of the rental income
achievable with a 50% probability of success) will not be less than theminimum rent.
② There is a risk of damage to the power plant due to earthquakes,
typhoons, landslides, etc. However, since all of the power plants owned
by CSIF use CSIQ panels, with the exception of some power plants, it isconsidered to be easier to restore than other infrastructure funds, where
panel manufacturers vary from power plant to power plant. In addition,
the majority of the damage amount is covered by non-life insurance(property, profit). However, there are cases where theft of copper wires
is not covered by non-life insurance.
③ There is a risk that the amount of power generated will decrease due to
output curtailment. However, CSIF has made it possible to limit output
curtailment to peak hours of power generation by promoting the
introduction of online output curtailment devices, so that the expected
lost variable rent can be kept to a certain extent. Since the current
earnings forecast incorporates the outlook for long-term output
curtailment by a third-party organization, if the degree of output
curtailment is smaller than the forecast, it may lead to an increase in theearnings forecast.
④ At present, the period during which corporate tax is effectively exempt
due to conduitability is limited to 20 years after listing, so there is a riskthat the tax burden will increase in the future unless the system isrevised.
⑤ There is a risk that costs will increase due to changes in the system. For
example, from April 2022, mandatory accumulation of disposal costs forsolar power generation facilities was introduced. In addition, from April
2024, a system of charging on the power generation side will be
introduced, and power generation companies will also bear part of themaintenance and expansion costs of transmission and distribution
facilities that have been borne by retailers until now. However, there iscurrently no additional burden on CSIF for those that have obtained FIT
certification and those that have obtained FIP certification before March
31, 2024, as they are not subject to charge during the FIT/FIP purchaseperiod.

38

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Figure 33: Income Statement (\ mn)
FY End

12/20

6/21

12/21

6/22

12/22

6/23

12/23

6/24 CoE

Sales (Rental revenues)

2,414

3,425

3,587

4,061

3,715

3,453

4,538

4,500

15.6%

46.9%

48.6%

18.6%

3.6%

-15.0%

22.2%

30.3%

Operating expenses

1,555

1,966

2,243

2,317

2,332

2,297

2,691

2,829

Rental expense

1,409

1,781

2,034

2,091

2.115

2,083

2,415

Asset management fees

61

88

112

127

116

109

169

Administrative service fees

19

23

28

28

27

29

28

Director’s compensation

2

2

2

2

2

2

2

Taxes and duties

0

2

0

0

0

0

3

Other

63

69

67

68

72

73

74

858

1,459

1,345

1,744

1,383

1,156

1,847

1,671

35.5%

42.6%

37.5%

42.9%

37.2%

33.5%

40.7%

37.1%

Non-operating income

37

91

9

3

40

57

2

Interest income

0

0

0

0

0

0

0

Dividends

-

0

-

0

-

0

-

Gain on forfeiture of unclaimed dividends

-

-

-

-

-

0

1

Insurance income

1

79

8

-

39

57

-

Guarantee commission received

-

-

-

-

-

-

1

Interest on refund

-

0

0

-

-

-

-

Miscellaneous income

36

12

0

3

0

0

0

Non-operating expenses

178

476

230

237

209

209

462

111

147

160

151

149

141

184

Interest on investment corporation bond

4

17

19

19

19

19

19

Investment corporation bond issuance cost

1

3

3

3

3

3

3

Borrowing-related expenses

57

213

38

38

38

38

213

Investment units issuance costs

-

73

-

-

-

8

42

Loss on retirement of noncurrent assets

5

24

10

27

-

-

1

717

1,074

1,123

1,510

1,214

1,004

1,387

1,404

29.7%

31.4%

31.3%

37.2%

32.7%

29.1%

30.6%

31.2%

717

1,074

1,123

1,510

1,214

1,004

1,387

1

1

1

1

1

1

1

Net income

716

1,073

1,122

1,509

1,213

1,003

1,386

1,403

NPM

29.7%

31.3%

31.3%

37.2%

32.7%

29.0%

30.5%

31.2%

YoY

Operating income
OPM

Interest expense

Ordinary income
ROS
Income before income taxes
Total income taxes

Source: Company Data

39

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Figure 34: Balance Sheet (\ mn)
FY End

12/20

6/21

12/21

6/22

12/22

6/23

12/23

Cash and bank deposit

2,829

4,612

5,101

5,082

5,272

4,990

5,911

Operating accounts receivable

362

1,007

757

1,149

799

1,036

947

Prepaid expenses

156

135

224

164

263

181

337

-

75

-

-

13

-

-

3,375

8,352

6,141

6,470

6,406

6,253

8,621

937

920

898

884

864

849

837

37,71036,84836,001

35,10434,27733,41833,352

523

512

500

488

477

466

454

4,485

4,506

4,506

4,506

4,506

4,506

4,571

Structures in trust, net

33

6,481

6,369

6,250

6,149

6,026

7,217

Machinery and equipment in trust, net

768

19,97919,567

19,16518,742

18,31830,406

Tools, furniture and fixtures in trust, net

3

92

90

88

87

85

123

117

4,771

4,770

4,770

4,770

4,770

6,949

Construction in progress in trust

-

-

-

-

-

4

4

Total property and equipment

44,593

74,116

72,702

71,25569,871

68,444

83,913

Total intangible assets

755

1,157

1,157

1,160

1,159

1,159

1,489

Total investment and other assets

323

651

612

574

535

497

985

Total fixed assets

45,61775,92474,472

72,98871,565

70,10086,386

Total assets

49,052

84,29980,63379,476

77,98676,36595,017

Operating Accounts payable

68

80

47

70

87

56

101

Accounts payable and accrued expenses

212

411

259

309

285

280

345

6,518

2,270

2,249

2,262

2,275

2,267

5,100

37

40

307

149

80

86

66

Total current liabilities

6,835

2,801

2,862

2,790

2,727

2,689

5,612

Long-term loan payable

19,52436,20632,78831,64430,51329,37638,876

Investment corporation bond

1,100

4,900

4,900

4,900

4,900

4,900

3,800

Total non-current liabilities

20,624

41,106

37,68836,54435,41334,27642,747

Total liabilities

27,46043,90840,55039,334

38,14036,96648,359Unitholders’ capital, net

20,87639,31838,961

38,63338,63238,39745,272

717

1,073

1,122

1,509

1,214

1,003

1,386

Total net assets

21,59340,391

40,08340,142

39,84639,40046,658

Total liabilities and net assets

49,052

84,29980,63379,476

77,98676,36595,017

Other
Total current assets
Structures, net
Machinery and equipment, net
Tools, furniture and fixtures, net
LandLand in trust

Short-term loan payable
Other

Surplus

Source: Company Data

40

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Figure 35: Cash Flow Statement (\ mn)
12/20

6/21

12/21

6/22

12/22

6/23

12/23

Income before income taxes

717

1,074

1,123

1,510

1,214

1,004

1,387

Depreciation cost

914

1,259

1,452

1,453

1,454

1,455

1,695

116

-645

250

-391

350

-237

-26

-2,468

2,493

-

-

-

15

-337

39

39

39

39

-228

50

232

-8

-169

78

-8

Cash flows from operating activities

1,508-1,067

5,589

2,603

2,888

2,339

1,307

Purchases of property and equipment-647-30,614

-230

-37

-72

-25

-17,169

-

-403

-

-3

-1

-1

-255

-654

-31,017

-230

-40

-73

-26

-17,441

Proceeds from short-term loans payable

-

-

-

-

-

-

1,100

Proceeds from long-term loans payable

1,000

23,100----11,600

Repayment of long-term loans payable-790-6,866-3,439-1,132-1,117-1,145-1,467-18,508

-

-

-

-

7,272

Dividends paid

-855

-855

-1,431-1,450-1,509-1,450-1,450Cash flows from financing activities-654

33,868-4,870-2,582-2,626-2,595

17,055

Free cash flow

854

-32,804

5,359

2,563

2,815

2,313

-16,134

FY EndDecrease (Increase) in operating accounts
receivable
Decrease (Increase) in consumption taxes
receivable
Decrease (Increase) in long-term prepaid
expenses
Other operating cash flows

Purchases of intangible assets
Cash flows from investing activities

Issuance of shares

89-1,385-471

Source: Company Data

41

Canadian Solar Infrastructure Fund, Inc. | 9284
(TSE)

Figure 36: Stock Indicators and KPI’s
FY End

12/20

6/21

12/21

6/22

12/22

6/23

12/23

6/24 CoEEPS (\)

3,099

3,234

2,902

3,902

3,138

2,594

3,111

3,107

BPS (\)

93,397

104,463

103,665

103,818

103,053

101,898

103,280

Dividend per share (\)

3,700

3,700

3,750

3,903

3,750

3,750

3,750

Dividend payout ratio

119.4%

133.4%

129.2%

100.0%

119.5%

144.6%

122.2%

Closing price (\)

133,400

126,500

122,700

122,500

124,000

121,600

111,900

PER (times)

43.0

39.1

42.3

31.4

39.5

46.9

36.0

PBR (times)

1.4

1.2

1.2

1.2

1.2

1.2

1.1

Number of Shares Issued (ts)

231

387

387

387

387

387

452

Number of treasury stock (ts)

0

0

0

0

0

0

0

231

387

387

387

387

387

452

Market capitalization (\ mn)

30,841

48,91247,44347,36547,94547,01750,551

Shareholders' equity ratio

44.0%

47.9%

49.7%

50.5%

51.1%

51.6%

49.1%

Interest-bearing debt

27,142

43,37739,93738,80537,68836,544

47,776

1.1

1.0

0.9

0.8

0.8

0.8

0.9

EV (Enterprise Value)

55,15487,677

82,27981,08880,361

78,571

92,416

EBITDA (\ mn)

1,772

2,718

2,797

3,197

2,837

2,611

3,542

EV/EBITDA multiple

31.1

32.3

29.4

25.4

28.3

30.1

26.1

ROE

3.3%

3.5%

2.8%

3.8%

3.0%

2.5%

3.2%

ROIC (capital invested)

1.8%

2.2%

1.6%

2.2%

1.8%

1.5%

2.2%

ROIC (business assets)

1.9%

2.4%

1.8%

2.4%

1.9%

1.6%

2.4%

Total output capacity (MW)

123.0

183.9

183.9

183.9

183.9

183.9

226.4

Number of shares of treasury stock excluded(ts)

D/E Ratio

3,775

452

Note: Share price indices for FY3/2024 are based on the closing price on March 22; balance sheet items are as of FY12/2023.
Source: Company Data

42